Micro, Mini and Standard Accounts?

[euml]

Hello!

In fiscal literature it's widely suggested that . . .you have at least 100,000 of trading capital before opening a ”standard account”, $10,000 to get a ”mini account” $1,000 for a ”micro account”.

I wonder if this also applies to real life circumstances? I've read somewhere on this forum (I believe it was composed by dialist, who has a superb comprehension of this) that one must have at least $30.000 before changing from micro to mini account.

What's the best possible way to ascertain the threshold, when should one up his game and change his accounts?

My soon tobe broker (EFX Group) has a fixed lot size: 1 lot = 10.000 units. If I'd love to emulate a micro account, all I would need to do is buy 0,1 lots for 1000 units, 1 lot to 10.000 components (mini account) and 10 lots for 100.000 components (standard account)?

I'd be very grateful for your help with this!

[semgioMM1902]

Hello,

Be care full of the leverage..to some trader it a dangerous thing if you dont fully know to use it prefer.

My soon tobe broker (EFX Group) has a fixed lot size: 1 lot = 10.000 units. If I'd love to emulate a micro account, all I would have to do is buy 0,1 lots for 1000 units, 1 lot for 10.000 components (mini account) and 10 lots for 100.000 components (standard account)? . . Yes this is correct but pls ask you broker regarding the limitation of lot trade to each type ( 1 lot=10.000 unit is a mini acct).To be below capitalized is a serious thing.So please review your demo trading linked to your manner of trading or currency management which you use. . .and also the funding resources of yours . Btw what Dial article on the newcomer forum excellent .

Suggestion:Mini is good to my opinion..since you are able to trade it in a standard lot (10) or micro (0,1). . .as the beginning to me..10-20k is Fantastic

Hello!

In fiscal literature it is widely recommended, that . . .you have at least $100,000 of trading funds before opening a ”standard account”, $10,000 to get a ”mini account” , or $1,000 for a ”micro account”.

I wonder if this applies to real life situations? I've read somewhere on this forum (I believe it was written by dialist, who has a superb comprehension of this) you should have at least $30.000 before shing from micro to mini account.

What is the greatest possible approach to ascertain the threshold, when if one up his game and alter his accounts?

My soon tobe broker (EFX Group) has a fixed lot size: 1 lot = 10.000 units. If I'd love to emulate a micro account, all I would have to do is buy 0,1 lots for 1000 units, 1 lot for 10.000 components (mini account) and 10 lots for 100.000 components (standard account)?

I'd be very thankful for your help for this!

[semgioMM1902]

: off course the market doesnt take care of it in all..the one should care is that you (refer to trader--I suggest us).

Who cares regarding lot size?
The market does not care if you exchange 1 standard lot or 10 minilots or 100 microlots.

[Fmanxugayz]

: off course the market doesnt care of it at all..the one should care is that you (refer to trader--I mean us).

Why would you care if the market does'nt maintenance...

[agmeseven]

As long as you are only risking a particular amount of capital it's irrelevant if you trade 10 minis or one standarf lot if you can afford you.

[euml]

Thank you, parlenk.

My beginning balance will be 4000. If I risk 3% ($120) and I have a 50 pip stop loss, I have to buy 2,4 lots of EUR/USD - is that correct? (considering that EFX's 1 lot signifies 10.000 units and EUR/USD 1 pip value is0,10) This calculation could be accurate, if I'd wanted to simulate a micro account.

However, what if I wanted to simulate a mini account? Should I buy 24 lots? And for a standard account, I would need to buy 240 lots?

[euml]

As long as you're only risking a certain quantity of capital it is irrelevant if you exchange 10 minis or a single standarf lot if you're able to manage one.

I can always risk 2% per trade. But unique accounts would give me different lot sizes. I'm uncertain how to calculate my lot dimensions for EFX's 1 lot = 10.000 units, because other brokers have something like this:

Micro Account:
1 lot = 1000 units
EUR/USD pip value = $0,10

Mini Account:
1 lot = 10.000 units
EUR/USD pip value = $1

Conventional Account:
1 lot = 100.000 units
EUR/USD pip value = $10

EFX's EUR/USD pip value stays always $0,10.

[Ememya]

Thank you, parlenk.

My starting balance will be 4000. If I risk 3% ($120) and that I have a 50 pip stop loss, I have to buy 2,4 lots of EUR/USD - is that right? (believing that EFX's 1 lot represents 10.000 units and EUR/USD 1 pip value is0,10) This calculation would be accurate, if I'd wanted to simulate a micro account.

However, what if I needed to simulate a mini account? Can I then buy 24 lots? And for a standard account, I'd need to buy 240 lots?

The amount of lots is irrelavent, its abritrary and has no effect on your trade. The smallest position dimensions is whats relavent, no matter what title you give it.

Additionally, you should never be trading just 1 of the tiniest unit that your account enables. If this is true then you dont have the ability to scale your rankings in fine increments when your account grows (or shrinks). Example, you decide that 2% (a rather normal risk) is equal to 100,000 base currency (one standard lot..heh) you create a good trade and increase your account equity by 10%, how do you make the most of this higher equity? You cant because to proceed until another position size you would need to exchange 200,000 units base currency which puts you past your 2% threshold. It'd be a far more efficient use of your own capital to get an account in which you may exchange 1000 base currency at one time, so the next time you exchange you are able to make the most of your increased equity (yay compounding).

[euml]

It would be a far more efficient use of your capital to have an account in which you can exchange 1000 base currency at one time, so the next time you exchange you can make the most of your increased equity (yay compounding).

Thank you for your reply. I realized that also. And EFX will allow you to trade by 1000 base currency. If my cash management principles tell me to buy 2,4 lots, I buy 2,4 lots. I don't need to round down to 2 lots or around up to 3 lots. I love this concept!!! I just hope that EFX (or MB Trading today) never shut down their business!

[Palxigevipk]

When speaking about risk in forex without utilizing stops from the calculation 1 standard lot, which will be 100 000 units. Then if efx want's to use their own titles, whatever. Use the term 1 lot for 100 000 units because that is standard. Even though leverage depends on used margin it is usually calculated that 1 lot utilizes $1000 that makes $100 000 using 100:1 leverage, ( even if you dont use it ).
So if you begin with $4000 and need a 2% risk.
4 lots is 100 percent risk.
4 minilots is 10% risk
8 microlots (8,000 components) is 2% risk.